The vast majority (83%) of Millennials, or Generation Y, millionaires own cryptocurrencies. Additionally, these individuals are planning to acquire even more cryptoactives in 2022.
That’s what a recent survey by the US media channel CNBC revealed that polled people with $1 million or more in investments.
The survey also revealed that more than half (53%) of these individuals have at least 50% of their wealth in cryptoactives. And nearly a third have about 75% of their wealth in BTC, ETH and other cryptocurrencies.
Millennials want more cryptocurrencies
According to the CNBC report, the crypto holdings of millennial millionaires (born 1981-1996) contrast sharply with older generations of millionaires.
That’s because only 4% of baby boomers (born 1945-1964) have cryptocurrencies. Meanwhile, more than three-quarters (75%) of Generation X investors (born 1965-1980) do not own any cryptocurrency, according to the survey.
“The results suggest that cryptocurrencies are creating a vast generational divide in investment and wealth creation. While older generations of millionaires are still largely skeptical of cryptoactives and their future, cryptocurrencies have become the main source of wealth creation and asset growth for many younger investors who entered early and saw quick returns,” says the report.
The survey also found that Generation Y millionaires have no plans to slow down their investments in cryptoactives.
After all, 48% plan to increase their possessions in the next 12 months. Meanwhile, another 39% plan to maintain their current levels of crypto investment.
Finally, only 6% of millennial millionaires plan to reduce their investment in cryptocurrencies in the next year.
Dilemma for managers
This increased interest in cryptocurrencies, according to CNBC, poses a dilemma for wealth management companies.
After all, most of the business of private banks, wealth management firms, and consultants comes from older clients who don’t want to expose themselves to the risks of cryptoactives.
However, the future of these institutions depends on next-generation customers who want digital currencies.
“I’m not sure the wealth management industry has recognized that it really needs to think of it as completely different generations. Most companies expected to ignore it. But Gen Y millionaires aren’t just going to ‘leave’ the cryptocurrencies,” said George Walper, president of the Spectrem Group, who conducted the survey with CNBC.